1. BMS4667 Laboratory Leadership and Management Dr. David Ricketts

2. MSc/PgDip Biomedical Science

3. Postgraduate Course Feedback Lesson 3: Business plan development

4. Learning outcomes Understand what is business planning Understand the factors to consider Understand the arena in which the plan has to compete Link it to your strategy

5. Why develop a business plan? Money In order to develop a service you need to be able to pay for it. This will often be competing against other items of similar of greater value, both clinically and financially The business plan is the document that brings structure to the case for funding

6. What is the threat Have you understood the challenges faced by those who will make the go/no go decision for your business plan to be accepted. Who are you competitors for funding/ resources? Discuss what you should understand?

7. Group discussion What do you include in a good business plan!

8. NMUH Proforma-executive summary 1.1Proposed development – include reasons and statement of need 1.2Case for change - fit with national priorities and Trust objectives 1.3List of options 1.4Recommended course of action

9. Summary 2 1.5Affordability of recommended option Year 1 Year 2Year 3Year 4 Income Expenditure Net Capital cost Is the division requesting additional funding? YES / NO

10. Summary 3 1.6Timescale 1.7Project lead

11. Identification of need 2.1Current facilities 2.2Case for change. Fit with national priorities and planning guidance 2.3Case for change. Fit with Trust objectives 2.4 Risk analysis, risk to organisation 2.5Identification of options

12. Option assessment Outline first option (repeat this for all options and do not just give one, include a do nothing option) Impact on activity – include statement of commissioner support The clinical case for change Affordability, plan for 4 years Capital required Economic assessment

13. Other issues ( for each option) Training Education and research Space requirements Link with hospital development Other- power, carbon footprint, ecological impact assessment, etc Risk associated with this operationally and service delivery

14. Selection Selection of recommended course of action – state option number and title Risk associated with implementation Timescale of implementation Post project evaluation

15. Checklist This should be a tick box to ensure all interested/ impacted parties are aware of the business case and its impact on them

16. Sign off This document will need executive sign off for approval. This may also need clinical/academic sign off depending on the business case.

17. That’s the document what decisions need making Purchase type if equipment is part of the plan Lease- if so from who? Capital purchase- if so how much Reagent rental Managed services contract

18. Tendering OJEU Official Journal of the European Union The UK thresholds for public sector tenders under the latest regulations are: Supply/Service contracts awarded by central government- £113,057. Supply/Service contracts awarded by other contracting authorities – £173,934. Works contracts – £4,348,350

19. What does this include? Everything for the length of the contract Do not forget VAT

20. Tender waivers These are legal documents that must be filled out if you are not tendering from a variety of suppliers They can be subject to challenge They must have CFO sign off

21. Business plan pitfalls Have you included staffing? Have you included capital charges and deprecation? Have you included training? Have you included infrastructure changes? Have you included visit costs/ rules? Have you included redundancy or redeployment costs? Have you considered the end of life costs from the contract? Have you considered the organisational change cost- what does this mean? Have you checked for conflict of interest? Have you check facilities costs?

22. More issues to plan for What is the expected ROI? What is ROI? Is the business plan future proofed? What do I mean by that? Have you included reviews and penalties for you plan?

23. Class exercise Discuss how you would use what we have learnt to design a business plan in a research environment?

24. Questions Thank you David.ricketts@nmh.nhs.uk